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Taxes and the economy an economic analysis of the top tax rates since 1945 congressional research service 2 tax revenues are necessary for debt reduction that tax rates on the rich are too low ie they violate the buffett rule and that higher tax rates on the rich would moderate increasing income inequality. Taxes and the economy an economic analysis of the top tax rates since 1945 congressional research service summary income tax rates are at the center of many recent policy debates over taxes some policymakers argue that raising tax rates especially on higher income taxpayers to increase tax revenues is part. Taxes and the economy an economic analysis of the top tax rates since 1945 this report examines individual income tax rates since 1945 in relation to these arguments and seeks to establish . Taxes and the economy an economic analysis of the top tax rates since 1945 summary income tax rates are at the center of many recent policy debates over taxes some policymakers argue that raising tax rates especially on higher income taxpayers to increase tax revenues is part of the solution for long term debt reduction. Income tax rates are at the center of many recent policy debates over taxes some policymakers argue that raising tax rates especially on higher income taxpayers to increase tax revenues is part of the solution for long term debt reduction this report examines the top tax rates since 1945 and analyzes the ways in which tax rates affect economic growth